It is common practice in America for companies to take out corporate-owned life insurance policies on their leaders and senior management, so that the company can offset the cost of replacing them if they die. However, some companies have begun to extend this practice to their low-level employees, which have become known as “dead peasant” policies. Although profitable for the business, it is often the case that the families of these low-level employees are not aware that this step has been taken and the practice has been outlawed in some states. Is this practice ethical for all employees? Or just top corporate leaders?
“Dead Peasant” Insurance Policies
- Publisher:SAGE Publications, Inc.
- Publication year:2011
- Online pub date:
- Discipline: Business Ethics
- Length:739 words
Region:GlobalIndustry:Financial and insurance activitiesOriginally Published In:2011). “Dead Peasant” Insurance Policies. In Organizational ethics: A practical approach ((2nd ed., pp. 364– 365). Los Angeles: SAGE Publications, Inc. ISBN: 9781412987967.Type:Online ISBN:9781506325903Copyright: © SAGE Publications, Inc. 2012